10 Tips for beginners on Football Index
Updated: Jun 26, 2020
New to Football Index and unsure of the best way to get started? Want to test the water? Nervous about your players falling in price just after joining? Read on for our top 10 tips for beginners on Football Index.
Let me begin this post by first welcoming beginners to the Football Index community and hoping that you find the information here useful and helpful when taking your first steps in the market and beyond. The Football Index journey for most, is one of ups and downs, trial and error, mistakes and lessons learnt. The vast majority of experiences on Football Index are positive, with good profit made by the majority.
Here I will provide some tips for beginners and guidance on some ways to get started on your journey. Whilst this can appear complex and lengthy at first, taking some time to consider each in turn will hopefully set you up for a better understanding of the market and factors which contribute to successful trading. Whilst there are many success stories in the trader community, it's also important to remember that there is no such thing as a perfect trade, and many successful traders have spent a lot of time and effort learning core skills and carrying out research. Despite this, it's also worth mentioning that trading casually and passively for profit is also possible and very common. Likewise, a recurrent theme within the Football Index community, and the golden rule we all forget from time to time is that patience is rewarded, so if at first you feel you are not succeeding, please do not become disheartened, and instead, reach out to the supportive Football Index community on social media, the forum or similar.
Below are my top 10 tips for beginners on Football Index. We hope they are helpful in starting your Football Index journey and please leave any comments or reviews you may have. It's great to hear from traders making their first steps and finding their feet, and hopefully the below will help you on your way.
Top ten tips for beginners on Football Index
When to join
Diversify, keep it simple & test the water
Observe the market
Beware of FOMO, Overtrading & the importance of patience
Read and Research
Engage with the Football Index community
Consider subscribing to a data provider
1. Start small
Football Index is a complex gambling platform with many ways to profit, and exciting opportunities abound. However, one consistent theme we see from new users (including ourselves!) to the platform are the challenges involved in finding your feet on the platform and the complexity of the various systems.
The main advice to give here is to start with a small deposit first. £10, £20 or £50. However much you are comfortable with. Be reassured that if you follow the advice given, you will not lose your stake and this will prepare for more prosperous trading further down the road.
Depositing small amounts will enable you to trade and test the water without fear or pressure. Remember the Football Index money back guarantee is always there for the first 7 days if you need it.
2. When to join
You may have started your Football Index journey following a referral from a friend, or after seeing some adverts. The time you decide to join isn't important as there will always be opportunities, but there are some factors to be aware of which may influence your immediate experience of the platform. Some may sign up and deposit immediately, others bide their time to decide when the time is right. There's no right or wrong way here, but whichever route you take, be aware of market movements and activity and how it will affect your portfolio.
Short term, the time of the week in which you join can have an impact on the value of players.
As expected, weekends are when the index is most active, with higher trading volumes, social media engagement and activity. On the flip side, these can of course be the more volatile days on the market and price fluctuations during and after matches should be expected. Prices of key players will likely rise ahead of a match and in line with his performance.
For beginners, this can be a great time to get involved and set aside time to observe and track your players
For anyone who has been on Football Index for some time will be familiar with the 'Monday morning sell off'. In reality this can start earlier, on Sunday evening as the weekend finishes and the dividend winners for the day become clearer. In many cases, players will have a small dip in price on a Monday morning and this can be a great time to buy, especially if you are buying for the long term and the player has performed poorly over the weekend.
The exceptions here are of course players involved in matches played on Monday evening, and possibly mid week (domestic and Champions League/ Europa League matches).
Longer term, overall market sentiment will determine if you are joining during a time of rising prices or during a dip. Again, there is no right or wrong time here, but there are factors to consider when determining price movements of players and who to buy.
As with traditional stock markets, prices on Football Index fluctuate and experience cycles of growth, stagnation and dips. These are to be expected and natural. As a beginner, it can be difficult to judge where in the cycle the market currently is. The FOOTIE provided by Football Index can provide some insight into this based on the previous days activity, but the exact calculations behind this are not completely clear.
Taking a more long term view, predicting market movements does become slightly easier with the season schedules, competitions, summer tournaments and transfer links. For example, the end of the domestic season will usually see a drop in players from that league, especially if they are unlikely to be involved in any summer tournament, or there are other domestic leagues still taking place.
As well as market rises, there is inevitably market dips from time to time. Whilst this isn't anything to be concerned about, it can be disconcerting to see a player drop sharply in value. In the majority of cases, the value will be restored over the long term so the most important thing to say here is to stay patient and ride the dip. Even top up if you are in a position to do so.
Tips for timing it right
Accept short term fluctuations
Engage with the Football Index community to understand market sentiment
Assess prices against what stage of the season we are in
Consider external factors and exceptional circumstances (eg. COVID-19, economic recession etc)
Embrace the current market and learn from it, whether good or bad
3. Diversify, keep it simple & test the water
A diverse portfolio is the cornerstone of successful trading and all portfolios should be diverse enough to ride out any dips, mitigate risk and ensure your Football Index experience is a positive one. Due to the large amount of players on the platform, 5 eligible leagues, media, European competition, International qualifiers and summer tournaments, this has never been easier.
A diverse portfolio will mean different things to traders but broadly speaking, the idea is to not overexpose yourself on one player (ie. have too large a holding in a single player which would have a big impact on your portfolio in the event of an injury, unfavourable transfer, retirement or other negative event.
A good rule of thumb here for a beginner would be to not have more than 10% of your total portfolio value in one player. The exception to this would be if you are depositing a very small amount in the beginning and where it is covered under the money back guarantee, and you therefore may wish to trade with greater risk at this stage.
With that in mind, a diverse portfolio would likely cover at least some of the following categories
The King(s). Those players who consistently return more than one of the below
Performance players (those who consistently challenge for Match Day dividends). Usually the higher priced players
Media players (those who consistently challenge for Media dividends)
IPD (In-Play Dividends) players - those who consistently return IPDs. Usually lower priced goal scorers, or those will a high number of clean sheets
Transfers Players - Players with transfer speculation or those expected to complete a favourable transfer
Young players - Hot prospects for the future who are expected to return a significant amount of dividends over their career
International Players - Those who consistently represent their country at a high level and are likely or very likely to feature in qualification matches and international tournaments
Outsiders. Players who are not currently playing in an eligible league or are out of favour but circumstances may change. These players can represent great opportunities to buy at a low price and double or more in price, but carry a significant risk.
Understanding the above will help in understanding player prices and planning a diverse portfolio.
Tip: Many experienced traders buy tracker shares (usually a single share in a player) to monitor price movement over time. This can be a great strategy for beginners in the first week(s) on Football Index. A single share in a player, or a few players from the 8 categories above over the course of a week or two will help in understanding price movements and how the mechanics of the index works.
Most importantly, however you trade and whichever direction you follow, the key to beginning on Football Index is to keep it simple.
4. Take Notes
With such a diverse market and the excitement of match days, it's easy to lose track of your portfolio and reasons for buying players. A good tip here, aside from avoiding overtrading is to make notes of why you are buying the player. Football Index data providers such as Indexgain and IndexTrak offer portfolio management tools which enable you to upload your portfolio and attach written notes on each player. Very useful for future reference if you are considering selling. One bad performance can see a player drop in value, and cause us to reconsider our reasons for holding, but as a rule of thumb, if the original reason for buying is still valid, then holding is likely to be the better option.
If portfolio management tools are something for the future, then a journal can be a better option. Having a diverse but limited portfolio can make this much easier. Whilst there is no rule on portfolio size, a diverse portfolio should likely include players from the 8 categories mentioned and of a scale which is manageable. For each trader, this will vary depending on time commitments, and although portfolios containing hundreds of players are a valid strategy, this wouldn't be recommended for a beginner.
Further, keeping a journal can enable you to rationalise your thoughts and adapt a strategy or plan for the future. Having a quick reference for player notes can be immensely useful, especially given how easy it can be to get caught up in movements and emotions when trading.
5. Observe the Market
Once your portfolio is in place, and no matter which stage in the market cycle we are at, the next step is to observe the market, This will be more exciting at times than others, but the important lesson to learn is why prices are static, moving up or down and which players are moving. Comparing this to external factors and broadly the football world, will be essential in understanding how to make money on Football index.
Some key questions which we like to ask ourselves when observing the market
Are there any non-football external factors influencing the market?
Whats the overall market sentiment in the trader community?
What stage of the football season are we at?
What may be the next trend?
If a large amount of money has gone into this player, where has the money come from? ie. is it new money being deposited into the index or has it created opportunities elsewhere. Example of this below.
What are the patterns/ trends? ie. are the top-end players rising? Lower-end? Media players, young players?
Referring to the fifth point above of money going out of one player and into another, an example may be two comparable players with similar status, prices and prospects. This can represent a good opportunity.
Whilst weekdays will see price movements in preparation for matches and media exposure, match days are likely the best way to experience market movements. Some questions for a matchday may be
What happens in the build up to a match? How does the schedule (order of matches) affect price movements?
What happens when the lineups are announced? and if the player is a surprise inclusion/ exclusion?
How do prices move in relation to performance (goals, assists) and the matrix scoring chart?
How do injuries affect players prices?
After the match, how does the players price move? Is he in contention for dividends? Will he receive IPDs?
When is the next match, and who is it against?
As discussed above, there will be price fluctuations during the week which can represent good opportunities to buy before the rush, or sell at a peak. Judging these is difficult even for the best of traders, but the more research done at this stage, the better prepared traders will be.
6. Beware of FOMO, Overtrading & the importance of patience
This post began with the message of patience being rewarded, but what does this mean? At what point, do we hold, and sell? Timing buys and sells to perfection, as most traders will agree, is a myth. There is always a peak above which you sold, and a dip below which you bought. There is no such thing as perfection here, but making judgements and most importantly, understanding why you are trading in or our of the player.
As most traders will agree, emotions can drive trading especially on match days, and this is where exercising caution and patience can pay off in the long term. As a beginner, I tried to resists the temptation to trade on match days despite how downheartening it was to see my players drop 24 hours after signing up and buying them. However, resisting the urge to act on impulse and emotion is recommended, especially in your first week(s) on the Football Index.
FOMO (Fear of Missing Out) is everywhere in the Football Index community. Seeing your player rise rapidly before you've topped up, or seeing a player on your watchlist rise just before you buy will happen at some point. Due to how the dynamic the world of Football is, opportunities will always present themselves on the index and missing out on one opportunity, means you are best placed for another.
Likewise, overtrading can be detrimental and leave you with feelings of regret. Selling a player after one poor performance, or small dip. A good way to asses the long term value of a player in the price history charts. What dips has the player had previously and recovered? How long did it take to recover? and how does this compare to the current situation?
Getting caught up in emotional trading is a trap which is all too easy to fall into and on this note, it's worth reiterating the Football Index approach to responsible gambling and the options available, such as timeouts. Reaching out to the Football Index community can also be beneficial here.
If there is one thing Football Index traders agree on it's the need for patience. Long term, player values have risen consistently and sticking with a player is often the best option.
7. Read and Research
Alongside observing the market, building and tracking a portfolio, reading and researching will prove beneficial in the long term. As Football Index has developed, in addition to the official podcasts and media, third party content providers have also increased and there is now a broad range of information available ranging from data providers, forums, blogs, podcasts and social media.
In addition to keeping track of whats happening on Football Index, there is also a range of great data providers with detailed statistics for players.
Taking time to research players and data can enable you to understand better why some players are better suited to the performance matrix than others, as well as planning your future portfolio. Statistics also enable you to form a broader opinion on the player and his performance over time.
Please see the Resources page with a list of Data Providers tailored to Football Index as well as general football data apps and websites.
8. Engage with the Football Index community
Alongside the official Football Index social media channels, there is a large Football Index community ready and willing to support each other and offer advice and guidance for beginners. These can be a great tool in gauging market sentiment, movements and trends.
Football Index is well represented on Twitter. With the official Football Index Twitter account regularly communicating with traders, Adam Cole answering live Q&A sessions and an active timeline under the #footballindex hastag.
The Football Index forum is the official forum with an active community discussing all things Football Index - players, prices, matches and even fun competitions.
The IndexGain slack community is a popular data provider with match day chat and price movement notifications.
9. Consider Subscribing to a Data Provider
Many traders on Football Index use a third party data provider for player stats, market movements and community engagement. There are a range of these available with various price points.
Despite improvements in analytics and data provided by Football Index themselves, third party data providers remain popular and are an excellent way of researching players, planning and managing your portfolio. Available in a range of formats, this is worth considering for those looking to take the next steps into Football Index.
10. Make plans
My final tip for beginners on Football Index is to plan your next moves. Assuming you are now comfortable with the mechanics of Football Index, market movements and looking to increase your portfolio size, it's essential to have a plan of the direction you are looking to take and the type of trader you see yourself as being.
This may include asking questions such as the below
How much time do I have available to commit to Football Index?
Am I more suited to short or long term trading strategies?
Is there a particular aspect of Football Index which interests me, or I feel is most profitable?
Which aspects of trading and selecting players am I stronger or weaker at?
What is my end goal and exit point?
How much money am I comfortable with having in Football Index?
For larger accounts on Football Index, you are designated an official account manager as your point of contact. The exact threshold for this is unclear but generally believed to be in the region of £10k+.
Whichever direction you choose for your Football Index journey, take pride in your portfolio, research, prepare, act responsibly and help others in the same boat.
Thank you for reading and I hope the above tips are useful for those starting their Football Index journey. It's important to remember that nobody makes perfect trades and it's a learning curve, so please take your time and go steady at first. Football Index is a fantastic product and revolutionary in it's sector and engaging for an increasing community.
Thoughts, comments and suggestions below please.